They allow aim assist?
I agree with most of what you are saying. To be fair since everybody has aim assist, it's kind of of dimension that all players have to deal with and work around how to abuse it the most. So in essence i don't think it's that much of a detriment to competition at all. But these kids can't or couldn't aim like Cypher or F0rest, that's an art on its own that is lost on console.
Yes, since CoD aims for you on console, the game at a competitive level is much more focused on strategy, which is still pretty interesting. It's kind of weird, though, because it's like everyone plays with an aimbot. The most important thing, I think, is too take advantage of the extremely narrow FoV on console, and set up good flanks against your opponents.
I really don't understand why aim assist is such a strange and upsetting topic in respect to console FPS Multiplayer. It is a necessary evil for aiming with dual analog. It is literally impossible to aim as well with dual analog sticks compared to a mouse. You get a pixel perfect aiming device that utilizes your entire arm, compared to the gross movement of an analog stick with only your thumb.
Halo CE essentially invented aim assist for consoles to replicate the control and accuracy afforded by a mouse in the best way possible through dual analog sticks. Different console FPS games handle this mechanic in varying ways, CoD being one of the easiest to control and utilize for mass consumption, but the same mechanics are there for everyome to use and perfect.
I don't know if most people know this, but there is a discrepancy in skill dependent on the implementation of aim assist in different Console FPS MP games. Some of them have mechanics that allow for a higher skill ceiling, based solely on the mechanics of aiming and aim assist. Whereas others, like CoD, have a pretty low, bare minimum bar of aiming in them.
Learning and exploiting, so to speak, the aim assist mechanics of a console FPS is a skill in and of itself. That specific skill is no where near the level of the pure and unassisted, unadulterated skill of PC FPS aiming with a Mouse is, but it is still a discernible and talent driven skill. A skill that dictates the overall talent level of a Console FPS player among their peers. This all ties into the inherent game mechanics of aim assist implemented by the designers of the game, so no game is the same, and thus no player's talent directly translates to all other console FPS. Which is a relatively unique concept considering the zero aim assist environment of PC FPS games.
There are other factors of FPS that determine its competitive merit of course, so bearing those in mind is important when judging a competitive FPS, aim assist or not. CoD is a pretty low bar in the aiming department on consoles, but that isn't to say other Console FPS are similarly as less skilled because they also have aim assist mechanics. They are handled differently to appeal to an overall game design goal.
CoD on 360 is on the MLG Pro Circuit because it is popular, well supported and easy to watch for spectators. MLG as a league knows its competitive console shooters, they were built on them. Halo CE is at the forefront of quality, high skill based console shooters. Shadowrun, being another one was a passion project because of how much they adored its merits as a competitive console shooter.
The harsh realities of running a eSports league has forced MLG to eschew their passions and host CoD tournaments on 360.